Lycopodium feels pinch from mining slowdown

UPDATE 1.55pm: A slowdown in the mining sector has forced Lycopodium to slash its interim dividend after the engineering and project management consultancy posted a 51 per cent slump in first-half profit.

The company announced a first-half profit of $6.3 million, down from $12.8 million in the previous corresponding period.

Revenue slumped 22.4 per cent to $95.8 million.

Lycopodium declared an interim, fully-franked dividend of five cents a share, down from 15 cents in the previous corresponding period.

The company gave a full-year revenue forecast of $140 million, which was at the lower end of previous guidance.

"The forecast is a reflection of the continued deterioration of the minerals industry segment," the company said.

Lycopodium said continued pressure on margins and delays in project awards had reduced the profit forecast.

"Lycopodium will continue to react to these market factors and adjust our business to remain competitive," the company said.

It said predicting the timing of any upturn in the mining sector was difficult, however the company generally believed it would remain "subdued" for the next 12-18 months.

Lycopodium shares closed down 22 cents, or 5.16 per cent, at $4.04.

The West Australian

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